The Future Unleashed: Eight Ways Gen Z Actuaries Will Transform the Profession
By Catherine Martin and Reilly McGarr
The Stepping Stone, September 2024
Introduction
Generation Z (Gen Z) was born between 1997 and 2012. They represent 25% of the world’s population[1] and will make up 27% of the workforce[2] by 2025.
While they may be young, Gen Z bring important characteristics to the actuarial profession. They possess a deep understanding of emerging technology and digital platforms, having grown up in a world characterized by rapid innovation and limitless connectivity. In addition to their technical know-how, Gen Z also demonstrates strong EQ and interpersonal skills, such as adaptability, inclusiveness, social consciousness, and resilience, which equip them to navigate complex challenges and drive positive change in the workplace.
Here are eight ways Gen Z actuaries will reshape the actuarial profession.
#1: Adapting For the Future
Having grown up with the internet as part of their daily lives, Gen Z are truly digital natives. They possess a natural affinity for utilizing technology, allowing them to quickly assimilate new and emerging tools. This adaptability will naturally accelerate the integration of cutting-edge technology, such as artificial intelligence, machine learning, and big data analytics, to elevate the current tools used within the actuarial industry.
#2: Decoding Data
With the ubiquitous presence of the Internet, mobile devices and social media, Gen Z has been immersed in an unprecedented amount of data, far surpassing any previous generation. Their aptitude for extracting valuable insights from complex data forms by proficiently manipulating them to create effective visualizations will benefit the field. Gen Z’s familiarity with advanced data analytics will lead to improved data-driven decision-making, results presentation, and strategic planning.
#3: Amplifying Togetherness
Compared to previous generations, Gen Z will be the most racially and ethnically diverse generation in the workplace, while also being the most progressive, as they embrace non-binary ideas of gender and sexuality.[3] They value and seek to celebrate their individuality and will actively work towards creating an environment that promotes equal opportunities and representation. This commitment to inclusion and open-mindedness will result in a broader range of perspectives and ideas, leading to more innovative solutions.
#4: Prioritizing Wellbeing
Gen Z prioritizes work-life balance and advocates for more flexible and remote work options. They want their time to be spent meaningfully, with in-person collaboration being purposeful and remote work being conducive to autonomy and flexibility. Considering flexible work arrangements can cultivate a more balanced lifestyle to increase employee well-being and job satisfaction. Ultimately, this will benefit both the talent and the overall productivity and success of the organization.
#5: Championing Social Consciousness
Gen Z has a strong social consciousness and holds a significant regard for social responsibility. They prioritize fairness, transparency, and accountability in all aspects of their work. Their commitment to ethical practices will continue to uphold and enhance the reputation and trustworthiness of the actuarial profession.
#6: Staying One Step Ahead
Gen Z is recognized for their strong work ethic, drive, and determination to succeed. They are motivated to learn and develop skills that will empower them to achieve success inside and outside of traditional actuarial work. Staying ahead of the curve will enable them to meet evolving demands and thrive in this ever-changing profession.
#7: Embracing Innovation
Gen Z’s aspirations go beyond simply adapting to evolving technology. They are motivated to solve new challenges using fresh perspectives and approaches and to drive the advancement of actuarial models, tools, and techniques. With their creative and innovative mindset, they aim to streamline processes and generate impactful business outcomes by actively contributing to the development of novel solutions.
#8: Driving Change
Gen Z is acutely aware that the world needs to change to address pressing social and environmental challenges. They are passionate about topics such as climate change, sustainability, and social equity, and will actively seek opportunities to apply their actuarial skills to address these critical issues. Contributing to initiatives that promote a more sustainable and equitable future is a priority for the next generation.
Conclusion:
Gen Z will bring fresh perspectives, challenge the status quo and drive innovation in the actuarial profession. It is essential for all of us to embrace this shift in perspectives within the insurance industry as an opportunity to learn from one another and collectively grow stronger. By recognizing and harnessing Gen Z’s distinct strengths and qualities, we can foster a forward-thinking and inclusive professional community that is well-equipped to tackle the challenges of the future. What Gen Z lacks in actuarial experience, they make up for with their exceptional adaptability, technological proficiency, social consciousness, and eagerness to learn and grow.
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.
Catherine Martin, FSA, ACIA, is a manager at the Actuarial Practice of Oliver Wyman. She can be reached at catherine.martin@oliverwyman.com or via LinkedIn.
Reilly McGarr, ASA, is the treasurer of the Leadership and Development Section Council. She is a senior manager at the Actuarial Practice of Oliver Wyman. She can be reached at reilly.mcgarr@oliverwyman.com. or via LinkedIn.
Endnotes
[1] Age group data adjusted to align with Pew Research Center definitions of each generation. Source: Fitch Solutions.
[2] Age group data adjusted to align with Pew Research Center definitions of each generation. Source: US Bureau of Labor statistics.